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“We want to stay on plan. We want to get to a balanced budget in the medium term. And to do that we have to reduce the expenditures of government,” Flaherty explained.

The budget is expected to ratchet back federal spending by between $4 billion and $8 billion in the first round of years of budget-cutting — a strategy that some economists and public service unions fear will mean the loss of thousands of jobs and reductions in government programs and services.

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Besides the restraint program, the first Conservative majority budget will also introduce major changes in the way Ottawa selects new immigrants, regulates environmental projects and funds research and development by businesses.

It’s being billed as an economic blueprint that looks beyond today’s issues and financial stats. It not only sets out Ottawa’s fiscal situation but also plots a new direction in several policy areas, according to Conservatives.

“Look at this as a hybrid budget, almost a throne speech. It will be broader than budgets past,” a senior government official said.

“It’s going to be very ambitious but with the goal that the Canadian economy can grow,” the official said.

Conservatives in recent weeks have hinted what Canadians can expect to see in several areas, including:

• Overhauling the way Ottawa funds research and development. The government doesn’t think it’s been getting enough bang for its $6.5 billion in R&D spending and wants improvements.

• Immigration changes to ensure newcomers have the skills needed to fill job openings here. The government wants to do more to help aboriginals get into the workforce.

• Changes to future social entitlements. With Old Age Security, the budget may push out the age of eligibility to 67 from 65. The government has already moved to cap its health-care costs after 2017.

• Streamlining approvals for big projects, such as pipelines, a potentially controversial move that will stir fierce opposition from environmentalists.

The spending reductions will not be implemented across the board. “Different departments will have different cuts because we don’t want an impact to service,” the official said. Environment, health, fisheries and public works may see heavy cuts. And the CBC may lose part of its funding.

Federal government employees will likely be asked to contribute more cash for their pension savings.

Nothing major is expected in the way of across-the-board tax breaks for individuals.

On the eve of the budget, the government was pulling out all the stops to convince Canadians that it’s an attempt to pave the way for future economic growth and prosperity — not just a cutting agenda.

“Everyone has been fixated on the deficit reduction stuff. That will be there too but you will see it is a piece of a much larger puzzle,” the official said.

But Canadians are already seeing the results of the Harper government’s efforts to save money, whether it’s longer waiting times for Employment Insurance cheques, the planned closure of a highly valued marine rescue centre in St. John’s, questions about lack of resources at food inspection agencies and controversies over the treatment of disabled soldiers by Veterans Affairs Canada.

And NDP Leader Thomas Mulcair fired up a Wednesday morning caucus with his vow to take on Harper’s Conservatives if it doesn’t fit with his party’s priorities.

“If Canada sees no action to boost job creation, if pensions and health care are cut and Canadians are left footing the bill, then Mr. Harper, you will have a fight on your hands,” he said.

“Mr. Harper has an opportunity to choose to give some respite to the middle class and to invest in job-creation . . . . I hope that’s what he’s going to do but again, we shouldn’t be dreaming in Technicolor,” Mulcair said.

Despite Mulcair’s threats, the reality is that in the majority Parliament, New Democrats don’t have the sway they did when the Conservatives had only a minority.

Liberal interim leader Bob Rae said the promised pro-economy action in the budget looks like a PR stunt to mask the budget’s real intent to dramatically slash federal spending.

“They’re going to pretend that they are doing stuff but the reality is they are going to cut services, cut transfers to the provinces in a variety of ways and dramatically increase costs to the provinces,” he said.

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